In the latest trading session, Sprouts Farmers (SFM) closed at $152.30, marking a +1.43% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.92%. Elsewhere, the Dow gained 0.31%, while the tech-heavy Nasdaq added 2.03%.
Prior to today's trading, shares of the natural and organic food retailer had gained 17.95% over the past month. This has outpaced the Retail-Wholesale sector's gain of 4.85% and the S&P 500's gain of 0.81% in that time.
Investors will be eagerly watching for the performance of Sprouts Farmers in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 20, 2025. The company's upcoming EPS is projected at $0.71, signifying a 44.9% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.95 billion, up 14.84% from the year-ago period.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Sprouts Farmers. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. At present, Sprouts Farmers boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Sprouts Farmers is presently being traded at a Forward P/E ratio of 35.66. This valuation marks a premium compared to its industry's average Forward P/E of 19.06.
Investors should also note that SFM has a PEG ratio of 1.98 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Food - Natural Foods Products industry had an average PEG ratio of 1.48.
The Food - Natural Foods Products industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 54, which puts it in the top 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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